A Proposal for a Standard Business Deduction: A Chat with Kathleen Thomas

Send us a textIn this episode, Scott and Jeff chat with Ruth Braunstein about her recent book "My Tax Dollars: The Morality of Taxpaying in America" wherein we discuss complicated issues related to using tax dollars to fund controversial issues like abortion and war. We discuss taxpayer resistance. We chat about the complexities that arise in government use of taxpayer dollars when the underlying population is extremely diverse.

Send us a textJeff and Scott chat with Kathleen Thomas, a UNC tax law professor, about a recent proposal to allow businesses to have a standard deduction, rather than track expenses. Kathleen explains how this proposal would simplify compliance with and administration of the tax code. 

Send us a textThe House Ways and Means Committee has pass The One Big Beautiful Bill the TOBBB). Knowing this was coming up, Jeff invited Scott to go on a Tax Chats road trip, but, got rejected--Scott was too busy. So, Jeff watched the process from a  distance. Jeff discusses what he observed, and Jeff and Scott discuss the contents of the bill, for far as it was passed by the House Ways and Means Committee. 

Send us a textJeff and Scott talk about the relationship taxes have with each other.  How are value added taxes related to sales taxes or the border adjustment tax, and how are all related to income taxes (or are they just unrelated)?  Find out by listening to this amazing episode.

Send us a textJeff and Scott talk to Ryan Monarch, economics professor at Syracuse University, about what we know about the tariffs imposed by the first Donald Trump administration in 2018.  

Send us a textJeff and Scott chat with Adam Michel of the Cato Institute about tax expenditures. Adam currently has on his X account the Tax Expenditure Madness brackets (also on his substack: https://adamnmichel.substack.com/). Adam sets up brackets like the March Madness NCAA basketball tournament,  but instead of pitting basketball teams against each other to establish the best team*, he has tax expenditures competing to determine which is the worst expenditure. Jeff, Scott and Adam chat about several sets of tax expenditures, and offer their somewhat tongue-in-cheek opinion about which ones are worst.*For example, by establishing that UNC women's basketball has won a national championship 1 time, compared to Duke's 0 times, or that UNC men's basketball has won the NCAA tournament 6 times, compared to Duke's 5 times. Of note is that of all teams with over 20 games played in the NCAA men's tournament, Duke has the highest winning percentage, which is only to say that they win a lot before they ultimately lose--they choke under pressure in the end.

Send us a text Jeff and Scott chat with Bill Gale of the Tax Policy Center about his new paper (with Oliver Hall and John Sabelhaus), "The Same But Different: How the Income Tax Affects Black, Hispanic, and White Households." We discuss how the bottom 70% of Black households, by income, pay less in tax than White households with similar incomes. This occurs because Black households have more dependents, on average, than White households, and children are tax advantaged in the U.S. In the top 30% of households, by income, White households pay less in tax because they are more likely to have tax-advantaged forms of income, such as capital gains. Across the first nine income deciles, Hispanic taxpayers pay less in tax, as Hispanic households tend to have more dependents throughout the income distribution. 

Send us a textJeff and Scott chat with Oyebola Okunogbe, an economist at the World Bank. They discuss tax enforcement in the developing world, including the challenges developing world countries face that more developed countries do not face, and, how those challenges shape tax systems. Get CPE for listening to Tax Chats! Free CPE courses are available approximately one week after episodes are published. Visit https://earmarkcpe.com/ to download the free app. Go to the Tax Chats channel, register for the course, take a short quiz, and earn your CPE certificate. 

Send us a textJeff and Scott talk about Elena Patel , an economics professor at the University of Utah, about her time working at the Council of Economic Advisors. Elena worked as a tax economist advising the chair of the CEA, who is an economic advisor to the President. Elena talks about how one gets this job, what one does in the job, what the CEA is general, and how the CEA interacts in a very political world.

Send us a textJeff and Scott chat with Rita de la Feria on tax fairness. Fairness is in the eye of the beholder, and tax fairness, in particular, appears to be particularly sensitive to whose eye is beholding.